Success Marketing and Portfolio Management

Success Marketing and Portfolio Management

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Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change, service, support, and success marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

Success Marketing and Portfolio Management

Technology service programs and offerings must evolve, and companies need to look beyond service marketing to focus on Success Marketing and Portfolio Management.

Success Marketing and Portfolio Management consists of the practices and activities necessary to create end-to-end, integrated success-focused programs capable of delivering a value-based message to promote adoption and attainment of tangible customer outcomes that sustain customer relationships and promote opportunities for growth.

The Subscription Impact on Service Programs

The very definition of technology service offerings is evolving.  Service entitlements that were once included as foundational elements of a service program may now be included as part of a product or subscription purchase. 

Standalone service programs delivered by siloed services departments such as Professional Services, Training and Support are increasingly offered through integrated success-focused service portfolios.  Success-focused service programs may complement or fully displace legacy service and support offerings. The nature of how customers purchase services is evolving too. Support programs attached to license sales and professionals service engagements sold as custom time and materials engagement are displaced by integrated a-la-carte success services that may be purchased as add-ons or obtained by service credits.

Success Marketing and Portfolio Management Defined

Success Marketing and Portfolio Management consists of the practices and activities necessary to create end-to-end, integrated success-focused programs capable of delivering a value-based message to promote adoption and attainment of tangible customer outcomes that sustain customer relationships and promote opportunities for growth.

There are eight fundamental success marketing practices.  Several of these practices extend the focus and scope of traditional service marketing responsibilities.  The expanded scope of Success Marketing must include the following:

  1. Customer Segmentation Strategy
  2. Ongoing Customer Needs Assessments
  3. Service Program Design Methods
  4. Portfolio Management
  5. Value Quantification
  6. Sales Enablement
  7. Marketing Tools and Resource Development
  8. Retention and Growth Planning

Treat Your Service Portfolio as a Product Line

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential they must keep pace with customer needs and expectations.

Formal Product Management of Service Portfolios

Treat service portfolios as valuable offerings by assigning dedicated program management resources to keep offerings up to date and relevant. Consider the following:

Develop service and success portfolios that span delivery silos (Support, Success, Education, Professional Services, etc.).

 

Assign a full-time dedicated product manager to lead program management activities for the service / success portfolios across service disciplines and related product families.

 

Establish goals and objectives for the service program manager based on performance and revenues directly associated with sale and renewal of service and success offerings.

 

Grow the team of portfolio product managers to keep pace with the size, complexity, and financial performance of the service portfolio.

 

To assure that your service and success portfolio remains relevant to customer needs review and update offerings on an ongoing basis.  Consider adding new offerings and enhancements as customer needs evolve.  Be certain to define and articulate the value of all offerings and reinforce service benefits to help sustain customer relationships.

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The eight fundamental Success Marketing and Portfolio Management practices are defined and described within this report.

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Treat Your Service Portfolio as a Product Line

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Support Pricing Benchmarks

Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

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Stop Selling Support and Start Selling Success

Stop Selling Support and Start Selling Success

It is no longer enough to attach a support program to a product sale. Effective Success Sales teams must be able to establish long term service relationships that last and grow well beyond the initial sale.

Success Sales Effectiveness

Success sales effectiveness is optimized when Sales teams are knowledgeable of service programs and can articulate a compelling value proposition for long term service benefits.  To maximize sales effectiveness, companies must establish formal success training programs.  Consider the following:

Establish a formal success sales curriculum to instruct sales representatives responsible for selling services (direct and through partners).

Instruct sales teams in the identification of success opportunities.

Provide opportunities for instructor led classroom and virtual training.

Supplement core training with periodic updates delivered through self-paced instructional videos and/or periodic live webinars.

Include coverage of core offerings, value proposition, use cases and overcoming objections.

Supplement sales training with supporting tools and reference materials.

Establish competency-based testing to verify sales representative knowledge. (internal sales staff and partners).

Assure that all service sales staff have been full trained, and their knowledge tested.  Monitor sales effectiveness by measuring initial service contract sales (attach), renewal rates and the rate that service revenue grows from expansion selling.

For additional insights into how to effectively market and sell services, consider the following featured report:

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*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

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Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

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Your Support Value Proposition is Out of Date

Your Support Value Proposition is Out of Date

Changes to product licensing – perpetual to subscription – will change the services and benefits customers need and expect from you. Make sure that your value proposition is up to date and relevant to the way you license products and deliver services.

From Product to Subscription-Centric Value

The benefits promised from post-sales services need to reflect the needs and expectations of customers.  Support and post-sales service benefits can be so much more than commitments to keep technology up to date or the speed that issues will be responded to.  Customers need and expect that your products will positively impact their business.

Consider how the elements of your service value proposition must change as you switch from product-centric perpetual licensing to subscription services.

Recommendations

 

  • Make sure that your value proposition is aligned with the way that you license products and deliver services.

  • Structure your value proposition to convey how your services will help customers use your products (onboarding and adoption) and apply them effectively (success services) to yield tangible business outcomes.

  • Evaluate your current service offers and consider what if any new services are required to meet customer needs and expectations.

  • Train and enable sales channels (direct and partners) to articulate your services value proposition.

  • Reinforce service value throughout the customer relationship – not just prior to renewal.

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The eight fundamental Success Marketing and Portfolio Management practices are defined and described within this report.

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*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

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How to Measure Net Recurring Revenue

Net Recurring Revenue is a comprehensive indicator that reveals the extent to which you are retaining, expanding and growing customer relationship value. Examining the specific underlying elements that contribute to the calculation of Net Recurring Revenue provides the necessary insights to identify the root causes of churn, attrition and contraction. In addition, examining the reasons for revenue growth presents opportunities to embrace and expand practices that encourage expansion of relationship value.

read more

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read more

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read more

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Selling Service Value

Selling Service Value

Selling the value of service is making the case for why the customer is better off with it than without. Selling services demands that you establish a credible and compelling value proposition.

The Guide to Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. The value proposition describes the relationship between the price and benefits from the services a customer receives. To be compelling, the benefits must be perceived to exceed the cost. Service benefits may be intangible – insurance against risk, or tangible – a commitment of specific resources or attainment of a specific outcome.

Although difficult, it is imperative to quantify the value of all service benefits so that they can be compared to the price. A compelling value proposition is fundamental for successful sales and renewal activities. Selling the value of services requires the following:

 

  • Understand your customers’ needs and expectations from the product and services they buy from you.

  • Offer a robust portfolio of services. Not all customers will need or benefit from the same types of service so develop offerings that can align to the customer segments you serve.

  • Set reasonable prices for your offerings. This does not suggest that reasonable is low, but it must be justifiable. Customers must understand and agree that the benefits of service are consistent with the price they pay.

  • Create a clear and compelling value proposition.

  • Help sales channels and renewal teams understand the elements of the value proposition so that they can clearly articulate it to customers during sales and renewal activities.

Support Program Design, Competitive Analysis and Pricing Strategy

Support program design and pricing is challenging. Contact me to learn how ServiceXRG can help you determine if your service portfolio is up to date and aligned with customer needs.

  • Do you offer the right programs?
  • Is your portfolio Customer Success-Ready?
  • Do customers need more or less than what you offer?
  • How well is your pricing aligned with customer expectations?
  • What do your competitors offer and what do they charge?

Contact us now to learn how we can help develop and optimize support and services portfolio offers.

Chat with us (see link on right side of screen), send an e-mail to tsweeny@servicexrg.com, or use our contact form.

Featured: Selling Service Value

Selling services demands that you establish a credible and compelling value proposition. To be compelling, the benefits must be perceived to exceed the cost. This playbook describes the essential steps to develop a compelling value proposition to maximize support sales and renewal activities.

Login to get your copy.  Not a Member?  Learn more about our Service Success programs or contact us.

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*Membership level determines your access to ServiceXRG research and other member services. Paid memberships include access to research and playbooks. Free memberships include access to some reports and discounts to others. Please visit our membership page for a list of available membership programs.

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Success Marketing and Portfolio Management

Technology service programs are evolving to offer new value and benefits such as use and adoption assistance and resources to help attain successful outcomes. As technology service programs change service marketing must evolve beyond selling the initial service engagement and focus on sustaining and growing relationship value.

read more

Treat Your Service Portfolio as a Product Line

Service and success programs are a significant source of revenue. To assure that they yield their maximum revenue potential, treat service portfolios as strategic offerings in the corporate portfolio by assigning dedicated program management resources.

read more

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Setting the correct price for your support programs begins with a baseline understanding of what your market will bear but ultimately the price must be based on the type and level and entitlements offered. The average prices for support programs range from 15.6 percent for a basic level of support to more than 26 percent for a high-end premium offer.

read more

Support or Success – What Type of Post Sales Service Portfolio Do You Need?

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Your Support Value Proposition is Out of Date

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